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3D Systems Acquires Phenix

Posted by vegasloki 
3D Systems Acquires Phenix
June 12, 2013 05:49PM
Earlier today 3D Systems announced they were going to acquire French direct metal 3D printer company Phenix. Not a play for the consumer space but in manufacturing and industry it's a good development.

Re: 3D Systems Acquires Phenix
June 12, 2013 09:37PM
I'm not sure it's a good development when 3DS buys any company.
Re: 3D Systems Acquires Phenix
June 13, 2013 05:49AM
It's an aggressive growth strategy and even though the book value of the company is over valued, it's still cash flow positive and profitable. Which is something that many, perhaps most organizations in the space aren't at this point particularly in the mass market end. Why do you say it's not a good development? Is it the Cubify deal? The Phenix space is vastly different than the Reprap/hobbyist/open hardware space. This is a play for industry, not consumer. FWIW I don't see the Cube being a general consumer printer at this point, primarily due to price point.

According to some reports Makerbot is in talks with Stratsys and that move is going to impact the consumer space. For the segment to gain consumer traction it's not going to be about Reprap and DIY. It has technology and people from that space but in the end the businesses will be structured much like a traditional equipment manufacturer. I see it more as a Linux/open source model as used in Internet infrastructure with much of the hardware being closed or at least parts closed. Some aren't going to like it, particularly in this community but the future if this gains critical mass is going to be more like Autodesk/Dassault/HP than Prusa/Marlin/Reprap. That scale of consumer product manufacturing can't be funded from a Kickstarter drive.
Re: 3D Systems Acquires Phenix
June 13, 2013 07:28AM
> That scale of consumer product manufacturing can't be funded from a Kickstarter drive.

[What about this one](http://www.kickstarter.com/projects/ttstam/openbeam-kossel-pro-a-new-type-of-3d-printer), they're mass producing many parts,(and electronics are already mass produced) are in the price range. It doesnt not involve soldering to assemble.(really i wish more wires used plugs on my machine, especially at the hot end..) Maybe they should automate leveling, could be pretty cheap and remove something from the list that people have to do.

It is not an enormous scale they're manifacturing at, but still.

On the other hand.. No matter how well they do, the likes of HP would use TV-ads and such and very quickly catch them in terms of known-ness and then it doesnt matter how good they are.. Tbh i dont like expansionists, but they do set our culture... If they can get that audience to really go mass production that way, at least without VC funding probably they should?
Re: 3D Systems Acquires Phenix
June 13, 2013 07:42AM
I think there are fundamental flaws in how business sees the current customer base. I think when 3d printing becomes more like 3d digital copiers, the market will change somewhat. I also think it will be big for future collaboration projects, where several people group to design shapes sculptures and machines, and as a group design complex objects a piece at a time, needing a 3d printer to contribute. at least this is my guess over where the market will go. the magic price point will be about 600$ in the next year or so, with average yearly costs of 300$-400$ for materials to run and print the machines.

this being said the traditional customer will be a business with service contracts.

it is hard to say what 3d companies large and small are planning. but the big boys are in it for keeps. purchasing laser sinister processes are a good bet for multi material machines. likely for corporate customers.
Re: 3D Systems Acquires Phenix
June 13, 2013 10:47PM
"it's still cash flow positive and profitable" - actually, according to the Motley Fool "Phenix Systems posted a $2.5 million loss on just $6.1 million in revenue last year, 3D Systems indicated that those losses shouldn't continue long". Truthfully, even if they do continue, 3D Systems could probably care less, they are more interested in the revenue right now and cornering the 3d printing markets as much as they can.

Phenix lost nearly half of their total revenue last year, but long term it is a technology that 3D Systems can make money from. 3D systems has a LOT of cash on hand, at around $110 million US$, and is trying to raise another $250 million US$ to continue their long shopping spree. Their stock is a high flyer, so it is just play money to them.

Short term, even as Phenix lost nearly half of the money they gained in revenue, the Phenix purchase (with only $6.1 million in total revenue last year) will be nearly instantly worth an approximate $72 million to 3D Systems stock market value which is nearly 3 times the total anticipated purchase price of $20 million for Phenix. It gives new meaning to the term "funny money".
Re: 3D Systems Acquires Phenix
June 13, 2013 11:52PM
I wasn't referring to Phenix. DDD is cash flow positive and profitable. Phenix is being purchased for parts, basically IP and whatever assets and people are needed to strengthen DDD's position in the market. They aren't buying them for their marketing and sales and I'd bet Phenix will be rebranded just as Alibre has and rolled into the umbrella 3DS family as a whole.
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